Earnings Report.
EndoSonics Announced Increased Profit and Revenue in Ivus
Business for Second Quarter
RANCHO CORDOVA, Calif.--(BUSINESS WIRE)--July 24, 1997-- EndoSonics Corporation (NASDAQ:ESON), a leading developer and marketer of intravascular ultrasound products, today reported total net income for the second quarter of $751,000, or $0.05 per share.
Prior to the inclusion of the Company's share of net losses of its former subsidiary, CardioVascular Dynamics, Inc. (CVD) -- (NASDAQ:CCVD), EndoSonics' IVUS business recorded a profit of $1.0 million, or $0.07 per share. These results compare with a second quarter 1996 total reported loss of $4.4 million, or $0.33 per share, which included $721,000 of CVD losses.
(Dollars in 000s except per share amounts)
3 Mos. Ended 6 Mos. Ended
June 30, June 30,
1997 1996(b) 1997 1996(b)
ESON (IVUS Only)
Revenue $7,134 $5,300 $13,464 $8,939
Net Income (loss) 1,012 (3,667) 1,782 (4,529)
Per Share $0.07 ($0.27) $0.11 ($0.34)
ESON Reported (including CVD)(a)
Revenue $7,134 $7,101 $13,464 $12,773
Net income (loss) 751 (4,388) 1,256 (5,627)
Per Share $0.05 ($0.33) $0.08 ($0.42)
(a)The Company began using the equity method of accounting for CVD commencing June 19, 1996, the effective date of CVD's initial public offering; (b) CVD was consolidated in EndoSonics' financial statements in the second quarter and first six months of 1996.
Revenues for EndoSonics' core intravascular ultrasound (IVUS) business increased 35% to $7.1 million compared with $5.3 million in the second quarter of 1996. Results reflect increased sales of both imaging systems and catheters in response to continued strong worldwide demand for the Company's IVUS technology.
EndoSonics' total reported revenues for the second quarter of 1996 were $7.1 million, including $1.8 million of CVD revenues as CVD was consolidated in EndoSonics' financial statements at that time.
Reinhard Warnking, President and CEO of EndoSonics commented, "Our results for the quarter reflect the growing acceptance of IVUS as a tool to maximize the effectiveness of interventional cardiovascular procedures and the gain in market share of EndoSonics' all-electronic systems and catheters.
"The results of the recent SIPS, MUSIC and CLOUT clinical studies reinforce this point by demonstrating that the use of IVUS provides significant clinical benefits and, as shown in the SIPS study, with no increase in acute hospital costs. Operationally, we have continued to ramp-up production of our Five-64 imaging catheters
while improving margins.
"The Company's strong performance in the second quarter ocurred as the management of EndoSonics and Cardiometrics, Inc. continued to work on the proposed merger of the companies," Warnking continued.
"Given the complementary nature of the products, we believe that the combined company will provide a more complete set of tools for the Cath Lab of the future. These tools, by the way, are even more important given the increased use of stents."
EndoSonics develops, manufactures and markets intravascular ultrasound (IVUS) imaging systems and catheters to assist in the diagnosis and treatment of cardiovascular and peripheral vascular disease. EndoSonics' IVUS imaging products enhance the effectiveness of the diagnosis and treatment of the coronary artery by providing important diagnostic information not available from conventional x-ray angiography.
The information includes the location, amount and composition of atherosclerotic plaque and enables physicians to identify lesion characteristics, select an optimum form of treatment, position therapeutic devices and promptly assess the results of treatment.
EndoSonics owns 44% of CVD, which develops and markets
site-specific delivery catheters, combined angioplasty-drug delivery
catheters, stent delivery systems, advanced therapeutic catheters and vascular access products.
Cardiometrics develops, manufactures and markets intravascular medical devices to measure blood flow impairment caused by coronary artery disease.
Cardiometrics' principal products, the FloWire(R) Doppler guide wire and FloMap(R) ultrasound instrument, represent a significant clinical advance -- on-line functional testing of blood flow impairment in the cath lab -- enabling cardiologists to evaluate the appropriateness of angioplasty interventions and assess
post-procedural results.
Cardiometrics also recently announced its first major order for its proprietary WaveWire(TM)/WaveMap(TM) pressure system which is the first true angioplasty guide wire with pressure-sensing capabilities. Cardiometrics reported sales of approximately $14 million for the fiscal year ended December 31, 1996.
For additional information on EndoSonics, please visit our Web site at endosonics.com .
ENDOSONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
_______ _______ _______ ________
Total revenue $7,134 $7,101 $13,464 $12,773
Cost of sales 3,819 5,306 7,238 8,802
_______ _______ _______ ________
Gross profit 3,315 1,795 6,226 3,971
Operating expenses:
Other research, development
and clinical 910 2,232 1,926 3,845
Marketing and sales 1,029 2,139 1,935 3,694
General and administrative 861 1,806 1,690 2,662
_______ _______ _______ _______
Restructuring -- 518 -- 518
_______ _______ _______ _______
Total operating expenses 2,800 6,695 5,551 10,719
_______ _______ _______ _______
Income (loss) from operations 515 (4,382) 675 (6,230)
Equity in net loss of CVD (261) (49) (526) (49)
Other income (expense):
Interest income 497 595 1,101 1,183
Distributorship fees and
other -- (34) 3 (16)
_______ _______ _______ _______
Total other income 497 561 1,104 1,170
_______ _______ _______ _______
Net income (loss) $751 ($4,388) $1,256 ($5,627)
======= ======= ======= =======
Net income (loss) per share $0.05 ($.33) $0.08 ($.42)
======= ======= ======= =======
Shares used in the
calculation of net
income (loss) per share 15,366,510 13,448,205 15,463,308 13,271,181
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CONTACT: EndoSonics
Donald Huffman, 916/368-8008
or
Morgen-Walke Associates, Inc.
Doug Sherk/John Swenson, 415/296-7383
David Sasso, Joshua Passman, 212/850-5600 |
